Holiday $$ Survival Guide

1. Buy gifts that keep on giving

We all want to be generous this time of the year, but there may be a smarter way to do that: Instead of indulging in every trendy item on your child's list (which she'll tire of by New Year's), invest in something that's fun and educational-like art lessons or a guitar class. That expenditure is gift that keeps on giving, and it's actually an investment in your child's future.

Or, buy one indulgent present and allocate the rest of your gift budget to a 529 educational tax savings plan that will go toward college tuition. "The money will grow tax-free," says Karla Dennis, a tax expert and mom of four boys. "And, when your child is ready to go to college, you'll have a nice nest egg to send her on her way."

2. Pay cash

Studies show that people spend around 15 percent more when they use a credit card. So an easy way to save this holiday season is to spend cash or use a debit card, says Sande Taylor, a financial consultant at Charles Schwab in Coral Gables, Florida.

3. Make an extra mortgage payment

If you're a homeowner, making an extra mortgage payment is like a fantastic financial gift to yourself. (And so much better to invest in your home rather than in a furnishing for it, right?)

"Your goal is thirteen payments in 12 months," Sande Taylor says. "This is a tax benefit since you'll receive an additional deduction from the mortgage interest paid. This will also help you to pay down your mortgage balance at a faster pace," she says.

4. Know your paperwork

The end of the year is a good time to review all of your important financial documents. One thing that's sometimes missed: the names on your promissory note-the document issued to whomever applied for your home loan. "Your name might not be on the document if you weren't working, had a low income, or perhaps a weak credit rating at the time you bought the house as a couple," says Jason Biro, co-founder of Saving Your American Dream (savingyouramericandream.org), a nonprofit that provides education, counseling, and assistance to consumers.

That could be bad (and expensive) news if you ever divorce. "Your lender may refuse to refinance if your name isn't on the promissory note," Biro says. "Even if you've been making the mortgage payments and your name is on the mortgage and title, you still may have zero rights to negotiate with your lender." Check it out.

5. Lower your tax bill

It's estimated that over 40 percent of property tax appraisals contain errors of some kind, resulting in higher taxes. All the more reason to check your tax bill carefully. "If you disagree with how your home has been assessed, file an appeal,' suggests Biro, adding that forms and instructions for filing can be found on your local tax assessor's website. "Three out of four people who have legitimate appeals walk away with lower taxes." That money comes in extra handy during the holidays.

6. Find cash -- at home

The end of the year is a logical time to take stock of household items that can be donated or sold. "You may have more in your house that's sellable than you think," says Taylor, the financial consultant. To find out, make an inventory of unused or underused items and consider donating them or a tax deduction or selling them on eBay or Craigslist. If you have gold jewelry that you're not wearing or that needs repair, consider selling your collection since gold is still at an all-time high (the gold market is cyclical, experts say; expect it to start to drop soon).

This "found" money could be used to help you bulk up your emergency fund (most experts recommend a fund that covers a few months rent/mortgage and living expenses)-a must-have in challenging economic times.

7. Keep track

Here's a budgeting exercise that just might shock you: For 30 days, spend money only on your bills and necessities, skipping the extras, such as clothing, movies, coffee, a pedicure, or dinners out. When you think of making an "unnecessary" purchase, write it down instead, making a note of the date, item, and price. "At the end of 30 days, tally your list," suggests Biro. "You'll quickly see how much more you would have spent. And that you've managed very well without them." This is a great way to get in touch with where your money is really going-and decide if there are other things you'd rather do with that cash.

8. Give yourself a gift

Here's the best present of all: peace of mind (better than any pedicure!). Many women underestimate how long they're going to live, and that could leave them in a financial bind, experts say. Here's the lowdown: A woman who reaches 65 has a 41 percent chance of living to 90 or beyond (by comparison, a 65-year-old man has a 28 percent chance.) That longevity, of course, is a double-edged sword because it means your retirement plan may need to cover 25 years or more! So planning and saving for retirement is super important. Make a resolution to see a financial planner and map out a savings plan in the new year.

This article was not authored by SunTrust, is general in nature and does not constitute legal, tax, or investment advice. SunTrust makes no warranties as to accuracy or completeness of this information, does not endorse any non-SunTrust companies, products, or services described here, and takes no liability for your use of this information.

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